Labyrinth Beginning Exploration Campaign at Comet Vale Operations

Labyrinth Resources Limited (ASX: LRL) (‘Labyrinth’ or ‘the Company’) is pleased to report on the Company’s activities for the December 2023 quarter. This includes an in-house evaluation of the current projects and opportunities that have not been explored previously.

Key Points

• Towards the end of the previous quarter, a reconnaissance field program completed in September 2023 with 34 rock chip samples of pegmatite and copper, nickel, and gold prospective rock from across the wider Comet Vale tenure are now complete and undergoing QAQC¹;
• In late November a 386 sample soil program was completed on the western Comet Vale tenements looking at gold-base metal and Li-Cs-Ta potential²;
• At the beginning of the quarter, Labyrinth completed the final CAD $500,000 (plus interest) owing to G.E.T.T Gold Inc. (TSXV: GETT) (‘GETT’) related to the acquisition of the Company’s Quebec projects;
• The final payment to GETT entitles the Company to acquire title of the Labyrinth and Denain Projects;
• Post quarter, Labyrinth announced the successful negotiation amending the terms the Project Acquisition agreement with respect to the obligation to deliver a 450 ounce Physical Gold Payment by 31 December 2023³;
• The payment will reduce to a 200 ounce payment with the remaining 250 ounces to be paid upon profitable production at Labyrinth Mine;
• Post quarter, Labyrinth announced the intention to divest Labyrinth Gold Project to Gold Projects WA Pty Ltd (‘GPWA’) for a cash consideration of USD $3,500,000⁴; and
• Labyrinth received a significant tax refund of circa $470k post quarter end in relation to Canadian resource expenditure⁵.

Figure 1 – Comet Vale Project location, WA

COMET VALE

During the quarter, considerable focus has been placed on the divestment of Labyrinth Gold Project in Canada, however targeting and planning of exploration activities is well underway at Comet Vale.

In the previous quarter, LRL announced the commitment to refocus exploration activities at Comet Vale Project near Menzies, Western Australia. The project is a joint venture project between Labyrinth (51%) and Sand Queen Gold Mines Pty Ltd (49%).

During 2023, LRL had begun the first genuine surface exploration project for 15 years, despite the project hosting extensive high-grade gold, copper and nickel laterite. The 18 hole RC drilling program took place in April 2023 targeting the down dip extensions of the Sand George Lodes with favourable results⁶. Just prior to this, an updated Mineral Resource Estimate was completed on the Comet Vale Underground (‘UG’) and Open Pit (‘OP’) historic resource (see Table 1 and 2)⁷.

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